Khazna, an Egyptian fintech startup focused on providing financial services to low- and middle-income workers, has raised $16 million in pre-Series B funding, bringing its total funding to over $63 million. The startup offers services like salary advances, digital payments, and microloans, targeting workers earning below the minimum wage. With a user base of over 500,000 people, Khazna aims to expand further by securing a digital banking license in Egypt and expanding its services into Saudi Arabia.
The company’s focus on credit offering, particularly to payroll and pension recipients and gig workers, helped it break even and achieve profitability. Khazna is working towards becoming a digital bank by securing a deposit-taking license in Egypt, which would allow it to lower borrowing costs and offer more affordable loans. The fintech startup is also targeting medium-term credit products like earned wage access (EWA) and payroll-backed lending in Saudi Arabia, aiming to capitalize on the growing demand for consumer finance in the region.
Khazna’s expansion plans are fueled by its strong connection to the Egyptian remittance corridor in Saudi Arabia, where nearly three million Egyptians live. Additionally, Saudi Arabia’s capital markets, including the Tadawul stock exchange, provide a path for a potential IPO, with the goal of deriving 40-50% of its business from Saudi Arabia in the next four years.
The recent funding round saw participation from global investors like Quona and Speedinvest, as well as regional firms like Aljazira Capital and anb Seed Fund. Despite the macroeconomic challenges in Egypt, investor confidence has rebounded, spurring renewed interest in Khazna’s growth potential.
